The Kingdom of Serbs, Croats, and Slovenes was formed in 1918; its name was changed to Yugoslavia in 1929. Occupation by Nazi Germany in 1941 was resisted by various paramilitary bands that fought themselves as well as the invaders. The group headed by Marshal TITO took full control upon German expulsion in 1945. Although Communist, his new government successfully steered its own path between the Warsaw Pact nations and the West for the next four and a half decades. In the early 1990s, post-TITO Yugoslavia began to unravel along ethnic lines: Slovenia, Croatia, and The Former Yugoslav Republic of Macedonia all declared their independence in 1991; Bosnia and Herzegovina in 1992. The remaining republics of Serbia and Montenegro declared a new "Federal Republic of Yugoslavia" (FRY) in 1992 and, under President Slobodan MILOSEVIC, Serbia led various military intervention efforts to unite Serbs in neighboring republics into a "Greater Serbia." All of these efforts were ultimately unsuccessful. In 1999, massive expulsions by FRY forces and Serb paramilitaries of ethnic Albanians living in Kosovo provoked an international response, including the NATO bombing of Serbia and the stationing of NATO, Russian, and other peacekeepers in Kosovo. Federal elections in the fall of 2000, brought about the ouster of MILOSEVIC and installed Vojislav KOSTUNICA as president. The arrest of MILOSEVIC in 2001 allowed for his subsequent transfer to the International Criminal Tribunal for the Former Yugoslavia in The Hague to be tried for crimes against humanity. In 2001, the country's suspension was lifted, and it was once more accepted into UN organizations under the name of Yugoslavia. Kosovo has been governed by the UN Interim Administration Mission in Kosovo (UNMIK) since June 1999, under the authority of UN Security Council Resolution 1244. In 2002, the Serbian and Montenegrin components of Yugoslavia began negotiations to forge a looser relationship. These talks became a reality in February 2003 when lawmakers restructured the country into a loose federation of two republics called Serbia and Montenegro. An agreement was also reached to hold a referendum in each republic in three years on full independence.

extremely varied; to the north, rich fertile plains; to the east, limestone ranges and basins; to the southeast, ancient mountains and hills; to the southwest, extremely high shoreline with no islands off the coast

pollution of coastal waters from sewage outlets, especially in tourist-related areas such as Kotor; air pollution around Belgrade and other industrial cities; water pollution from industrial wastes dumped into the Sava which flows into the Danube

chief of state: President Svetozar MAROVIC (since 7 March 2003) head of government: Prime Minister Dragisa PESIC (since 24 July 2001); Deputy Prime Minister Miroljub LABUS (since 25 January 2001) cabinet: Federal Ministries act as Cabinet elections: president elected by the Parliament for a four-year term; election last held 7 March 2003 (next to be held NA 2007); prime minister appointed by the president election results: Svetozar MAROVIC elected president by the Parliament; vote was Svetozar MAROVIC 65, other 47

unicameral Parliament (126 seats - 91 Serbian, 35 Montenegrin - filled by nominees of the two state parliaments for the first two years, after which the president will call for public elections elections: last held 25 February 2003 (next to be held NA 2005) election results: percent of vote by party - NA%; seats by party - DOS 37, DLECG 19, DSS 17, ZP 14, SPS 12, SRS 8, SDP 5, SSJ 5, other 9

Federal Court or Savezni Sud; Constitutional Court; judges for both courts are elected by the Federal Assembly for nine-year terms note: after the promulgation of the new Constitution, the Federal Court will have constitutional and administrative functions; it will have an equal number of judges from each republic

Democratic Opposition of Serbia or DOS (a coalition of many small parties including DSS) [leader NA]; Alliance of Vojvodina Hungarians or SVM [Jozsef KASZA]; Democratic League of Kosovo or LDK [Dr. Ibrahim RUGOVA, president]; Democratic List for European Montenegro or DLECG [Milo DJUKANOVIC, Ranko KRIVOKAPIC]; Democratic Party or DS [collective interim leadership led by Cedomir JOVANOVIC]; Democratic Party of Serbia or DSS [Vojislav KOSTUNICA]; Democratic Party of Socialists of Montenegro or DPS [Milo DJUKANOVIC]; Party of Serb Unity or SSJ [Borislav PELEVIC]; Serbian Radical Party or SRS [Tomislav NIKOLIC]; Serbian Socialist Party or SPS (former Communist Party and party of Slobodan MILOSEVIC) [Zoran ANDJELKOVIC, general secretary]; Social Democratic Party or SDP [Rasim LJAJIC]; Together for Changes or ZP [leader NA]

Alliance for the Future of Kosovo or AAK [Ramush HARADINAJ]; Democratic League of Kosovo or LDK [Ibrahim RUGOVA]; Democratic Party of Kosovo or PDK [Hashim THACI]; Group of 17 Independent Economists or G-17 [leader NA]; National Movement for the Liberation of Kosovo or LKCK [Sabit GASHI]; Otpor Student Resistance Movement [leader NA]; Political Council for Presevo, Meveda and Bujanovac or PCPMB [leader NA]; The People's Movement for Kosovo or LPK [Emrush XHEMAJLI]

MILOSEVIC-era mismanagement of the economy, an extended period of economic sanctions, and the damage to Yugoslavia's infrastructure and industry during the war in Kosovo have left the economy only half the size it was in 1990. Since the ousting of former Federal Yugoslav President MILOSEVIC in October 2000, the Democratic Opposition of Serbia (DOS) coalition government has implemented stabilization measures and embarked on an aggressive market reform program. After renewing its membership in the IMF in December 2000, Yugoslavia continued to reintegrate into the international community by rejoining the World Bank (IBRD) and the European Bank for Reconstruction and Development (EBRD). A World Bank-European Commission sponsored Donors' Conference held in June 2001 raised $1.3 billion for economic restructuring. An agreement rescheduling the country's $4.5 billion Paris Club government debts was concluded in November 2001; it will write off 66% of the debt; a similar debt relief agreement on its $2.8 billion London Club commercial debt is still pending. The smaller republic of Montenegro severed its economy from federal control and from Serbia during the MILOSEVIC era and continues to maintain it's own central bank, uses the euro instead of the Yugoslav dinar as official currency, collects customs tariffs, and manages its own budget. Kosovo, while technically still part of the Federal Republic of Yugoslavia (now Serbia and Montenegro) according to United Nations Security Council Resolution 1244, is moving toward local autonomy under United Nations Interim Administration Mission in Kosovo (UNMIK) and is dependent on the international community for financial and technical assistance. The euro and the Yugoslav dinar are official currencies, and UNMIK collects taxes and manages the budget. The complexity of Serbia and Montenegro political relationships, slow progress in privatization, and stagnation in the European economy are holding back the economy; nonetheless, growth may be 4.5% in 2003.

total: 48,603 km paved: 28,822 km (including 560 km of expressways) note: because of the 1999 Kosovo conflict, many road bridges were destroyed; since the end of the conflict in June 1999, there has been an intensive program to either rebuild bridges or build by-pass routes (1999) unpaved: 19,781 km

587 km note: the Danube River, central Europe's connection to the Black Sea, runs through Serbia; since early 2000, a pontoon bridge, replacing a destroyed conventional bridge, has obstructed river traffic at Novi Sad; the obstruction is bypassed by a canal system, but the inadequate lock size limits the size of vessels which may pass; the pontoon bridge can be opened for large ships but has slowed river traffic (2001)

the Albanian government calls for the protection of the rights of ethnic Albanians outside its borders in the Kosovo region of Serbia and Montenegro while continuing to seek regional cooperation; several ethnic Albanian groups in Kosovo voice union with Albania; has delimited about half of the boundary with Bosnia and Herzegovina, but sections along the Drina River remain in dispute; in late 2002, Serbia and Montenegro and Croatia adopted an interim agreement to settle the disputed Prevlaka Peninsula, allowing the withdrawal of the UN monitoring mission (UNMOP), but discussions could be complicated by the inability of Serbia and Montenegro to come to an agreement on the economic aspects of the new federal union